Applying for a student loan can be a difficult & aggravating experience for all of us. But it doesn’t have to be if you are aware of your options. Most people who are young immediately look for a cosigner to help them get loan approval. They are unaware that they may not necessarily need a cosigner.

First of all cosigners are usually needed for the sects of people like recent high school graduates who have limited or no credit & adults who have bad credit. Most of these people immediately pursue a cosigner to get them approval, as they are unaware of other options.

There are a number of loan organizations available that will provide loans to those with no credit, little credit or bad credit. But most individuals must make sure the organization they apply with is legit, as some companies like this are scams & pry on individual’s need. Unfortunately there is one thing that usually allows these companies to allow loans given out due to lack of credit. The loans usually come with rather high interest rates, along the lines of credit cards, which is usually two or three times the normal college loan interest rate.

So it is best to be aware of these loans, but should probably be used a last resort. There are some positives to having a cosigner on your loan. First, it puts someone else in harms way if the loan is not paid. This is good because usually the cosigner will be an adult with good credit who will be willing to pay what they can to keep their credit above par. Secondly, the interest rates are reasonable & can be paid each month to neglect accumulation.

Loan companies who accept you without a cosigner, may not necessarily charge you an inflated interest rate but most that are out there will. Like with any loan it will only benefit you if you take the time to explore all options available to you. You may be able to find a student loan with the same interest rate you would have received if you had a cosigner. While this is usually a rare instance you may never find a “rarity” if you do not take the time to explore all options available to you.

Loans with or without cosigner is the big decision to make. Be aware not taking a cosigner usually means you will have a harder time finding a loan & will end up paying more interest.